How to win subcontracts from prime contractors

Not every small firm wants to be the prime contractor. Subcontracting can bring public work with less bidding effort, less contract risk and a chance to build experience you can use in your own bids later.

Why primes need small firms

• Specialist skills they don't have in-house: accessibility, a niche platform, data engineering, cyber testing.
• Capacity at short notice.
• Local presence in a region they don't cover.
• Small business or diversity goals. Many contracts require or reward subcontracting to small, local, Indigenous or diverse businesses, and US federal contracts often require large primes to have small business subcontracting plans.
• Social value commitments. See social value in IT bids.

How to find primes

• Award data. See who keeps winning the contracts you want. See using contract award data.
• Framework lists. Look at who's on the major frameworks, such as Canadian supply arrangements, GSA Schedules or UK frameworks.
• Bidders' conferences. Attendee lists show who's bidding.
• Supplier diversity portals. Large firms often have small business or supplier diversity programs with registration pages.
• US resources. The SBA's subcontracting network (SubNet) lists subcontracting opportunities from primes.

How to approach them

1. Lead with a specific gap you fill, not a general pitch.
2. Send your capability statement and two relevant case studies.
3. Contact them early, ideally when a tender is first expected, not the week it closes.
4. Ask to be named in their bid, which can strengthen your position after award.

Protect yourself in the subcontract

Subcontracts usually "flow down" the main contract's terms. Check:

• Payment terms. When does the prime pay you? "Pay when paid" clauses tie your payment to theirs. In the UK, the Procurement Act 2023 implies 30-day payment terms into many public sector subcontracts.
• Work share. Is your share guaranteed, or just possible?
• Liability and insurance requirements.
• Non-solicitation. Can you work directly with the buyer later?
• IP. Who owns what you create?

Use it to grow

Ask the prime and the buyer for references, keep records of what you delivered, and turn it into case studies for your own bids.

Common questions

Is subcontracting a good way to start in government contracting?

Often, yes. It gives you public sector experience and references with less risk, though margins are usually lower than as prime.

Can I bid against a prime I subcontract to?

Usually, on other tenders. On the same tender, an exclusivity clause in your teaming agreement may stop you.

How do I get paid as a subcontractor on a government contract?

By the prime, under your subcontract terms, not by the government. Check payment timings carefully.